MCN tipped me to this article in Barrons on Creative Capital's practice of investing in the artist, and not the project.

BRENT GREEN WAS 25 AND ABOUT to relinquish his dream of becoming a filmmaker when he discovered Creative Capital.

Green had been looking high and low for a $14,000 grant to finish an animated film. Creative Capital, a nonprofit based in New York, sized him up and offered something entirely different: $43,000 to help support his career over the next three years. It would go toward everything from equipment to transportation to the cost of a publicist. In return, Green would give Creative Capital a small cut of any profits.

In the five years since then, Green's work has been shown at the Sundance Festival and a number of museums and film festivals in North America and Europe. He has even found himself turning down galleries eager to represent his work.

Borrowing ideas from the venture capital industry, Creative Capital is encouraging their grant recipients to become Artrepreneurs, and it is literally paying off. Out in in the general world of every-day entrepreneurs, several folks have joined together to create Thrust Fund, an online marketplace precisely for such personal investments.

There's only so much creative work any of can do without funding. Sure, I can cut my overhead and take jobs for hire, but I know that my best work comes when I am collaborating creatively at the earliest stages. The difficulty with this approach is I DON'T GET PAID FOR IT. I can not keep doing development because I can't afford to do it.

Producers these days are forced to look for ready to go projects that they can earn a quick production fee on. Sometimes you can get lucky and find those projects that are aligned with your sensibilities, but that is nothing more than good fortune. This approach used to work under the idea of "one for them, one for me", but as an agent recently said to me in an effort to explain why I should be happy to receive less than half of my regular fee for similarly budgeted projects "precedent is not even a word we know anymore". When rates are dropping, what's one to do? Take more jobs. When one is forced to work on project after project that they did not development, what happens to the quality of the work? It gets worse, a great deal worse.

VentureBeat has a good profile on the Thrust Fund including their involvement with at least one filmmaker. The film biz should take notice of these new investment strategies pioneered by both Creative Capital and the Thrust Fund. Filmmakers should move off of the one project at a time approach and start looking for investment in the ongoing conversation.

Suffice it say, I am open for offers... although I do think this sort of thing can move us even closer to a world of indentured servitude. For better or worse, I have always avoided any debt beyond my mortgage and single picture finance, but hey, there still is such things as good deals.

Recently on this TrulyFreeFilms blog, Michael Walker of Pangofilms asked why more producers don’t invest in their own movies. This is part two on my attempt to answer Michael.

Walker’s question of why producers don’t invest in their movies brings us back to the perennial problem that most people think that producing is just about raising the money. The first film that I raised the financing for was Hal Hartley’s FLIRT, even though I had already produced about ten films by then. Producing has always been about making the best movie possible and making sure that the audience for it, sees it. The money part of the equation is just the steps needed to get to the making part.

It seems like until the late ‘80’s producing was solely the province of the wealthy and privileged. Up until then it also seemed like those that could pursue producing in this country, had to do it the Hollywood way – which meant that if you succeeded presumably you quickly became more wealthy and privileged. Producing will never be a secure profession in America, but it is open to those who are willing to work at it and have something to offer – not just the wealthy and privileged.

I don’t have money to offer – and never expect to – but my partners and I do make considerable investments in all our films. When we consider taking on a new project, we anticipate it will be a three-year commitment at the very least. Although we have had projects like AMERICAN SPLENDOR that only go through a few drafts (and go on to get nominated for the Academy Award), we also figure that each project will have a minimum of fifteen drafts. Some have forty or more. Each draft represent reading time, discussion, notes, and generally a fair amount of emotion. The scripts themselves require research through books, websites, and other movies -- more time, more energy, and more thought. Even AMERICAN SPLENDOR was something that I had spent years developing before I brought to the writers, having already shot footage on Harvey & Joyce, secured the Letterman tapes, committed to a hybrid structure, and decided on the central theme of the project -- when Bob & Shari walked into the office they were like a dream come true, the perfect peg to fill the hole: a couple who had written bio pics and made docs on off-center pop culture.

A producer gets no glory for the films they create and make. A producer’s name is rarely recalled for the work that others have enjoyed. A producer is the one that each side looks to for solutions, and thus one that has to sacrifice to bring satisfaction. When the film works, it has no bearing for the producer on future rewards, as it will the actors, directors, and writers. When things go well for a producer, it means more people seek them out, more people expect them to pick up the tab. The producers I know are creative collaborators who put their heart and soul into their projects, but never achieve the ownership that might lift their savings into real levels of security.

The demands on a producer don’t change due to their limited finances however. Each project is also a relationship, or rather several. The filmmakers, investors, and collaborators all have real needs and need thoughtful attention. The forays that we make to investors, cast, crew, distributors, critics, and fans all depend on different relationships that we have put considerable time and effort into. If we are going to survive, theses other relationships will need to extend far past the singular film. How well we service these relationships will directly reflect what fruit we can bring to subsequent projects. Each new film is a risk, where all this historic good will, this capital we have raised, is tested and re-valued.

Recently on my TrulyFreeFilms blog, Michael Walker of Pangofilms asked why more producers don’t invest in their own movies.

This question first assumes that there are producers who could even afford to consider this possibility. Right now, when it comes to financial matters, I don’t know of any producers that aren’t first and foremost concerned about their immediate survival (even the concern of long term survival now looks like a luxury). The business once supported prolific quality producers with overhead deals, but those days are now dead and gone. A financial investment in a movie is not something most producers can afford.

I have made financial investments in my films, but mostly in terms of bridge loans and never with any reward for it. Usually the director didn’t even know I was doing it. And once I got burned and came very close to watching it spiral and thus losing a great deal more as a result. I have also “invested” in filmmakers I believed in, whether to help them complete their movie, or just to survive, but never in a structure that had expectation for financial reward -- more as a friend or family member would. But generally, the reason why, as a Producer, I haven’t invested financially in my projects, is because I, like most producers, can’t afford to. Sad to break it to you, but Indie Film producing is not a lucrative profession. We don’t do it for the money honey.

To be frank, I think investing in films is counter to what a producer should be doing. Investors generally are looking for a financial return, albeit one that contributes something to the culture too. A director is trying to make their movie. A producer has to balance these multiple interests. One of the most difficult things about producing is making sure all collaborators share a common agenda. As much as folks claim to be on the same page, their behavior frequently betrays this goal. The director and the financier both need to know the producer is looking out for their diverse interests.

Producers have a fiscal responsibility to their movie, but it is not their only responsibility. I am surprised that a director would want a producer who by way of their investment was declaring the fiscal responsibility their primary one. I would be surprised that investors would want to go forward without someone to balance their needs with that of the director’s. How would such an investor ever get a great film? Unfortunately, a film’s financial success is dependent on far many things beyond the quality of the script, so even if the producer who developed it had infinitely deep pockets, the intersection of art and commerce would create an imbalance of power. Movies thankfully will never just be about these interests; it is the blend that really makes each film find new heights.

Mind you most of film finance is probably classifiable as Loco-vesting, but I was struck by one of the ideas cited in the NY Times' excellent YEAR IN IDEAS roundup. Locavesting is simply the practice of investing in local businesses.

A region's benefit in incentivizing locavesting is akin to the logic around state tax credits: money spent in film is again transfered to the region's other businesses generally. Civic leaders recognizing this might come up with additional incentives to encourage it. Certainly a savvy producer would be sure to foreground this with any locally-based investor-wannabe. The promise of regional cinema could be grounded by such a locally based film slate investment fund.

This is that excerpt from the article:

LocavestorsBy AMY CORTESEPerhaps you’ve heard of locavores: people who eat only foods that have been produced within a 100-mile radius. Now some people — call them locavestors — are investing in much the same way. The idea is that, by investing in local businesses, rather than, say, a faceless conglomerate, investors can earn profits while supporting their communities. To help match mostly local investors with capital-hungry local businesses, regional stock exchanges are starting to spring up around the globe.

Consider InvestBX, which was formed to serve businesses looking to raise relatively small sums in England’s West Midlands region. In February, InvestBX’s first listed company, Teamworks Karting, which runs an indoor go-kart center in Birmingham, raised more than $735,000 to open a new track in nearby Reading. In November, Key Technologies, a high-tech firm with 232 employees and annual sales of some $26 million, floated shares worth nearly $3 million. To list on InvestBX, a company must be based in the United Kingdom and have a significant part of its operations in the West Midlands. Companies can raise about $3 million from “local and U.K.-wide investors.”

Local exchanges address a financing gap for smaller companies, which may not be able to attract venture capital and for whom the major exchanges may be out of reach. “Small businesses need funding options more than ever in today’s recessionary climate,” says Trexler Proffitt, a professor at Franklin & Marshall College in Lancaster, Pa., who recently completed a feasibility study for a seven-county Lancaster exchange. (His conclusion: affirmative.)

In a way, we’re coming full circle. Until the 1950s, when they began to consolidate, there were thriving regional exchanges all across the country. “Globalization has been advantageous, but we’re starting to see the sacrifices we’ve made,” Proffitt says. “People are interested in figuring out how to connect to their local communities again.”

SF Film Society Blog

We announce the full program of the 58th San Francisco International Film Festival tomorrow morning! So many exciting films, programs & special events to share with you all. Something for everyone this Fest! Parents, look out for our Short 5: Family Films program. This annual collection of shorts — one of the most popular programs at #SFIFF — is sure to please the smallest members of your family as well as the young at heart and everyone in between. A variety of incredible storytellers & animators have attended this program in years past, including #MoonbotStudios, #JonKlassen, #BillPlympton, #MoWillems, #AardmanAnimations,#WestonWoods and some of the current greats at #Pixar. After films screen, we host Q&As and meet-and-greets, where you’ll have the opportunity to chat with filmmaker guests, and maybe even catch an autograph or two. Pictured below is #RobertKondo — a director of the Academy Award-nominated film #TheDamKeeper — signing the shoe of a fan at this program at SFIFF57. Stay tuned: this year’s (knockout) lineup will be released tomorrow with the rest of the Fest!

We are stoked to present NightLife @calacademy on April 2! Evening highlights include a special screening of Oscar nom'd short #TheDamKeeper with a live drawing demo from one of the film's directors; a Q&A with the minds behind Google Advanced Technology Projects and Spotlight Stories; and an exclusive clips presentation from #Advantageous, a sci-fi #Sundance prize-winner from Bay Area filmmaker Jennifer Phang, who will stick around to talk special effects after the screening. & If you feel the need to shake loose at any point, dip out into Cal Academy's gorgeous piazza and get down at our Silent Disco, featuring synthy and riffy jams from some of your favorite 70s & 80s film soundtracks. Visit bit.ly/SFIFFlife for tickets & more! Photo by Lizzy Brooks.

We are excited to announce the Opening, Centerpiece and Closing films at the 58th San Francisco International Film Festival! This year, #AlexGibney's intelligent and insightful doc #SteveJobs: The Man in the Machine will kick off the program; #TheEndOfTheTour, a biographical drama following literary giant #DavidFosterWallace, will play as #SFIFF's Centerpiece film; and #Experimenter, in which #PeterSarsgaard gives a stellar performance as controversial social scientist Stanley Milgram will close out the Fest. Tickets to all three films are on sale to #SFFSmembers now, public onsale begins noon Friday (3/27). Full info at sffs.org.

#TBT: About 20 years ago, soon-to-be sci-fi & fantasy legend #GuillermoDelToro attended the San Francisco International Festival will his very first feature film, #Cronos, a vampire horror set in 16th century Mexico. He has done much work since SFIFF37, becoming a major player in both commercial and indie camps, with films ranging from the magical #PansLabyrinth to the spectacular #PacificRim. We are so pleased to announce that del Toro will be the recipient of this year's Irving M. Levin Directing Award. Catch him at the #CastroTheatre on April 25 to hear him discuss his career, to see clips from both old and new work and to watch one of his best-loved films, #TheDevilsBackbone. Tickets on sale to #SFFSmembers now, public onsale begins noon March 21. Full info at sffs.org.

#Regram from @ross_bros. Stoked that these guys won the Louis Black “Lone Star” Award at #SXSW for their film #Western. Congrats to the filmmakers and crew behind this stunning production. Proud that this doc is one that #SFFSsupports!

Don't call him Ricky — at least, not if you expect him to answer. The recipient of this year's Peter J. Owens Award is none other than screen legend #RichardGere. We are so excited to honor this prolific actor with one of the Festival's most prestigious prizes. Gere will host an evening at the #CastroTheatre, where he will discuss his career and screen his new film #TimeOutOfMind, a stunning, observational portrait of a man who must cope with homelessness in contemporary New York. Tickets on sale to #SFFSmembers now. Public onsale begins noon March 19. Visit sffs.org to purchase or for full details.

Each year at the Festival, we honor an actor whose career exemplifies independence & integrity with #SFIFF's Peter J. Owens Award. Recipients of this esteemed prize include screen legends #DustinHoffman, #HarrisonFord and #WinonaRyder (pictured). When Ryder was recognized back in 2000, we screened #TheAgeOfInnocence, a film for which she earned an Academy Award under Martin Scorsese's direction. We will be announcing this year's awardee early next week. Until then, enjoy this #TBT!

Don't walk, RUN: earlybird #SFIFF ticket packages are now on sale, and we just announced this year's slate of feature-length competition films! Golden Gate Award nominees this Fest hail from almost 20 countries across the globe and are in contention for nearly $40k in prizes. Get to know these remarkable films before we release the rest of the Fest and snag discounted tickets at sffs.org. Pictured: Run, a narrative film from the Ivory Coast & France up for the New Directors Prize at SFIFF58.

Missed it last #SFIFF? We've collected as many streaming links as we could dig up for films from last year's Festival. Start a SFIFF57 movie marathon while you wait for us to release the full SFIFF58 lineup on March 31. You've got 21 days and more than 40 films to choose from (including the gorgeously filmed #Tracks, starring #MiaWasikowska, pictured). Make your way to blog.sffs.org/watch – a simpler trek than one across the Australian Outback.

Thrilled to announce that #MirandaJuly will be bringing #NewSociety, her latest performance project, to #SFIFF audiences April 28 & 29. Hilarious and moving, this experiment in theatrical collaboration chronicles the ways societies emerge, transform, decay and persist over time. Like July's other projects, New Society blurs boundaries between fiction and reality, and audience and performer. So excited to present this event in collaboration with #SFMOMA; tickets on sale NOW to our members & theirs at sffs.org. Photo by #PamelaGentile. #SFFSmembers

In anticipation of this Friday's release of Boyhood with the filmmaker returning to SF for a round of Q&As, watch the onstage interview with Richard Linklater and Parker Posey and Boyhood Q&A from An Evening with Richard Linklater at the 57th San Francisco International Film Festival!

The San Francisco Film Society wrapped its 57th San Francisco International Film Festival (April 24–May 8) with 263 screenings of 168 films from 56 countries, which were attended by over 300 filmmakers and industry guests from over 20 countries. Over 15 days, SFIFF57 showed 74 narrative features, 29 documentary features and a total of 65 short films. See all the highlights and photo galleries!

Last night, the 57th San Francisco International Film Festival announced the winners of the juried Golden Gate Award and New Directors Prize competitionsat an event held at Rouge | Nick’s Crispy Tacos. This year the Festival awarded nearly $40,000 in prizes to emerging and established filmmakers from 13 countries around the globe!